The Block Buster Scam

Boyd Ostroff · February 18th, 2005, 02:29 PM

<<<-- Originally posted by Imran Zaidi : Haha! That's like a slap in the face. -->>>

Question is: who's getting slapped?

Quote:

Stacey Widlitz, an analyst with Fulcrum Global Partners LLC, predicted that Hollywood shareholders would hold out for the Blockbuster offer. "Blockbuster is a much better deal, and investors will go where the best offer is," she said.

Douglas Habib · February 18th, 2005, 07:45 PM

Well, FWIW; I recall reading (VERY recently) about litigation initiated by the NJ Att Gen against BB for EXACTLY THIS. Something about violation of their Consumer Fraud Act.....deceptive promotion, etc. Has a Class Action Suit going, IIRC. May have been already covered here, or not; just a point to ponder.........oh, yeah - on today's MSN Money site, with comment on market perceptions, IIRC.

Brandon Greenlee · February 19th, 2005, 01:21 AM

Even though I don't really agree this relates to this thread...

http://money.cnn.com/2005/02/18/news...ex.htm?cnn=yes

In my experience I was told up front by Blockbuster employees the first time I rented under the No Late Fees program how exactly it worked.

Yi Fong Yu · February 19th, 2005, 11:49 PM

it's funny because some lawmakers also love watching movies. so they rent@blockbusters and probably experienced the same things consumers do =).

Mike Butler · February 23rd, 2005, 08:27 PM

I want to watch my movies on a Barco or Christie projector like Boyd uses at the Philly Opeera! :-)

Seriously, I used to find it such a pain in the arse to schlep back down to BB (their nearest store is not on my way to anything) with my returns in order to avoid becoming part of their "revenue enhancement" scheme (late fees). So when Netflix hit the scene, I was elated./..of couse now its an industry paradigm that evrybody including BB is emulating. Of course, the competitive pressure from the imitators helped force Netflix into lowering their price...gotta love that. But you can't beat the ease of throwing the dvd back into the postage-free mailer and sticking it in the mailbox outside your door.

What makes it work for me is that they have just about everything...from new releases (you can put a movie on your list before it even hits the theater screens, it just waits to go in your queue until the movie is released on dvd) to old John Wayne and Kurosawa to Ken Burns docs and vintage rockumentaries to TV shows. I love the last one, I can see all the Sopranos and Sex & The City episodes without having HBO, and watch 3 episodes in one sitting if I feel like it. And catch up on Buffy. Try getting that kind of comprehensive inventory with your local B-Buster store.

As far as jonesing out for a certain special movie I GOTTA see tonight, what are the chances that it will be in stock at even the best rental store?

And yes, BB's hidden late fee IS a scam as far as I am concerned...like the baks that advertise a low fixed rate on their cards until the first time you are one day late and they jump your interest rate to 21%...Better yet, how about the banks that have rates that they can change if you are late with OTHER creditors!!!!! (they pull a credit report at various intervals to see how you are doing with all your loans and charge accounts!) It's all legal if it's buried in the contract...the large print giveth and the fine print taketh away. By contrast, if I want to I can jolly well sit on a movie for half a year or longer with Netflix and the only thing that happens is I don't get the next movie in my queue until I return one. I recently held on to Gangs of New York for three weeks before getting around to watching it...it's a pretty long movie. Bottom line, read carefully. I prefer and recommend Netflix, but of course your mileage may vary.

Boyd Ostroff · February 23rd, 2005, 08:44 PM

It's funny, I was listening to a call-in radio show on a New Jersey station (NJ 101.5) this past Monday, and they spent a whole hour talking about NJ Attorney General Peter Harvey's action against Blockbuster. The hosts of the show (who are very sarcastic) were pretty much ripping the state of NJ for the whole thing. One wise-assed caller theorized that the state was taking action because they didn't like the precedent of anybody eliminating fees. The hosts claimed there was only one consumer complaint to the attorney general's office. They also pointed out that after 8 days Blockbuster is supposed to call you and send out a notice that your rental is due. Most of the callers seemed to agree that the action by the state is frivolous and that their local stores explained the new policy.

One woman called in and was upset because her son had rented a video game which he hadn't returned. She was hit with a $40 replacement charge after a month and said she didn't get any notice that it was due. One might wonder why she let her son use her card without monitoring it though...

Before Blockbuster started this policy my daughter would receive cards from them about overdue rentals, and she racked up some pretty big bills for late charges which she ultimately had to pay (I'm glad the card was in her name and not mine! ;-) I think their new policy would have saved her quite a bit, assuming they sent out timely notices. Evidently the late fee is only $1.50 for up to a month.

Boyd Ostroff · February 23rd, 2005, 09:23 PM

<<<-- Originally posted by Mike Butler : I want to watch my movies on a Barco or Christie projector like Boyd uses at the Philly Opeera! :-) -->>>

This is off-topic, but interesting that you mention it... Barco is bringing me and several other designers to Scottsdale next month for a meeting to launch their new "creative light imaging" division. They are going to show off their toys and get input from us to help them plan new products and solutions for the performing arts. Should be a lot of fun; I'll report back to everyone afterwards. Of course, none of us will be able to afford most of the cool stuff they show us... ;-)

As for watching DVD's... I just got a 37" plasma screen which looks pretty good to me as I relax on my porch with my beverage of choice :-)

Brandon Greenlee · February 23rd, 2005, 10:17 PM

Speaking of which - I just got a call from blockbuster tonight about my rental of Se7en.

I'm gonna watch it one more time though....

Mike Butler · February 24th, 2005, 08:48 AM

That 37 sounds like just the thing to beat the pants off my 36" Mits (8-y.o. CRT) which is 2 feet deep and too mammoth to put out on the porch. Actually I spend most of my viewing time in the kitchen with a 27" Samsung (also a CRT)...the only flat TV I have is a 23" Sony LCD. I don't like the picture on it and really only use it for field setups, when its 2.5" depth and light weight make it a breeze to schlep in the car or truck.

Boyd Ostroff · March 25th, 2005, 12:39 PM

In case anybody is still following Blockbuster's exploits, today they withdrew their hostile takeover bid for Hollywood Entertainment, citing concerns that it wouldn't make it past regulatory approval. This gives a green light for Movie Gallery to acquire Hollywood Entertainment, creating a combination of the country's #2 and #3 video rental chains.

http://biz.yahoo.com/rb/050325/retai...kbuster_3.html

Robert Knecht Schmidt · March 25th, 2005, 12:45 PM

Personally, I would prefer if my local Hollywood Video merged with Caterpillar, Inc. of Peoria, Illinois.

Mike Butler · March 25th, 2005, 06:15 PM

Yeah, I just saw that on Foxnews, Boyd!

RKS, I know there is a joke in there somewhere...something about crackhoes and backhoes, maybe?

Jeff Boeckman · March 25th, 2005, 06:44 PM

My local video store is Suncoast and Walmart. I just purchase them. No late fees ever.
late
jb

Robert Knecht Schmidt · March 25th, 2005, 07:57 PM

"RKS, I know there is a joke in there somewhere...something about crackhoes and backhoes, maybe?"

I just think we'd be better off with it torn down. It's a pesthole of petty theft, child abuse ("You ain't gettin' that! Put it back!" smack!), and corruption of impressionable minds with Scooby Doo 2.

I go in there, but I never like it.

Mike Butler · March 26th, 2005, 10:27 AM

WHOOF! Sounds pretty nasty! I go no further than my mailbox, using Netflix.

February 18th, 2005, 07:45 PM	#32
Douglas Habib Regular Crew Join Date: Nov 2003 Location: LV, NV Posts: 50	Well, FWIW; I recall reading (VERY recently) about litigation initiated by the NJ Att Gen against BB for EXACTLY THIS. Something about violation of their Consumer Fraud Act.....deceptive promotion, etc. Has a Class Action Suit going, IIRC. May have been already covered here, or not; just a point to ponder.........oh, yeah - on today's MSN Money site, with comment on market perceptions, IIRC. __________________ Molon Labe! AOC (Ancient Order of Curmudgeons)

February 19th, 2005, 01:21 AM	#33
Brandon Greenlee Major Player Join Date: Dec 2004 Location: North Alabama Posts: 242	Even though I don't really agree this relates to this thread... http://money.cnn.com/2005/02/18/news...ex.htm?cnn=yes In my experience I was told up front by Blockbuster employees the first time I rented under the No Late Fees program how exactly it worked. __________________ Brandon Greenlee

February 19th, 2005, 11:49 PM	#34
Yi Fong Yu Trustee Join Date: Sep 2002 Location: Vulcan Posts: 1,564	it's funny because some lawmakers also love watching movies. so they rent@blockbusters and probably experienced the same things consumers do =). __________________ bow wow wow

February 23rd, 2005, 08:27 PM	#35
Mike Butler Machinist Mate Join Date: Oct 2001 Location: Southern Connecticut Posts: 644	I want to watch my movies on a Barco or Christie projector like Boyd uses at the Philly Opeera! :-) Seriously, I used to find it such a pain in the arse to schlep back down to BB (their nearest store is not on my way to anything) with my returns in order to avoid becoming part of their "revenue enhancement" scheme (late fees). So when Netflix hit the scene, I was elated./..of couse now its an industry paradigm that evrybody including BB is emulating. Of course, the competitive pressure from the imitators helped force Netflix into lowering their price...gotta love that. But you can't beat the ease of throwing the dvd back into the postage-free mailer and sticking it in the mailbox outside your door. What makes it work for me is that they have just about everything...from new releases (you can put a movie on your list before it even hits the theater screens, it just waits to go in your queue until the movie is released on dvd) to old John Wayne and Kurosawa to Ken Burns docs and vintage rockumentaries to TV shows. I love the last one, I can see all the Sopranos and Sex & The City episodes without having HBO, and watch 3 episodes in one sitting if I feel like it. And catch up on Buffy. Try getting that kind of comprehensive inventory with your local B-Buster store. As far as jonesing out for a certain special movie I GOTTA see tonight, what are the chances that it will be in stock at even the best rental store? And yes, BB's hidden late fee IS a scam as far as I am concerned...like the baks that advertise a low fixed rate on their cards until the first time you are one day late and they jump your interest rate to 21%...Better yet, how about the banks that have rates that they can change if you are late with OTHER creditors!!!!! (they pull a credit report at various intervals to see how you are doing with all your loans and charge accounts!) It's all legal if it's buried in the contract...the large print giveth and the fine print taketh away. By contrast, if I want to I can jolly well sit on a movie for half a year or longer with Netflix and the only thing that happens is I don't get the next movie in my queue until I return one. I recently held on to Gangs of New York for three weeks before getting around to watching it...it's a pretty long movie. Bottom line, read carefully. I prefer and recommend Netflix, but of course your mileage may vary. __________________ I ain't straight outta Compton, I'm straight out the trailer. Cuss like a sailor, drink like a Mc. My only words of wisdom are just, "Radio Edit."

February 23rd, 2005, 10:17 PM	#38
Brandon Greenlee Major Player Join Date: Dec 2004 Location: North Alabama Posts: 242	Speaking of which - I just got a call from blockbuster tonight about my rental of Se7en. I'm gonna watch it one more time though.... __________________ Brandon Greenlee

February 23rd, 2005, 08:44 PM	#36
Boyd Ostroff Wrangler Join Date: Dec 2002 Location: Mays Landing, NJ Posts: 11,802	It's funny, I was listening to a call-in radio show on a New Jersey station (NJ 101.5) this past Monday, and they spent a whole hour talking about NJ Attorney General Peter Harvey's action against Blockbuster. The hosts of the show (who are very sarcastic) were pretty much ripping the state of NJ for the whole thing. One wise-assed caller theorized that the state was taking action because they didn't like the precedent of anybody eliminating fees. The hosts claimed there was only one consumer complaint to the attorney general's office. They also pointed out that after 8 days Blockbuster is supposed to call you and send out a notice that your rental is due. Most of the callers seemed to agree that the action by the state is frivolous and that their local stores explained the new policy. One woman called in and was upset because her son had rented a video game which he hadn't returned. She was hit with a $40 replacement charge after a month and said she didn't get any notice that it was due. One might wonder why she let her son use her card without monitoring it though... Before Blockbuster started this policy my daughter would receive cards from them about overdue rentals, and she racked up some pretty big bills for late charges which she ultimately had to pay (I'm glad the card was in her name and not mine! ;-) I think their new policy would have saved her quite a bit, assuming they sent out timely notices. Evidently the late fee is only $1.50 for up to a month.

February 23rd, 2005, 09:23 PM	#37
Boyd Ostroff Wrangler Join Date: Dec 2002 Location: Mays Landing, NJ Posts: 11,802	<<<-- Originally posted by Mike Butler : I want to watch my movies on a Barco or Christie projector like Boyd uses at the Philly Opeera! :-) -->>> This is off-topic, but interesting that you mention it... Barco is bringing me and several other designers to Scottsdale next month for a meeting to launch their new "creative light imaging" division. They are going to show off their toys and get input from us to help them plan new products and solutions for the performing arts. Should be a lot of fun; I'll report back to everyone afterwards. Of course, none of us will be able to afford most of the cool stuff they show us... ;-) As for watching DVD's... I just got a 37" plasma screen which looks pretty good to me as I relax on my porch with my beverage of choice :-)

February 24th, 2005, 08:48 AM	#39
Mike Butler Machinist Mate Join Date: Oct 2001 Location: Southern Connecticut Posts: 644	That 37 sounds like just the thing to beat the pants off my 36" Mits (8-y.o. CRT) which is 2 feet deep and too mammoth to put out on the porch. Actually I spend most of my viewing time in the kitchen with a 27" Samsung (also a CRT)...the only flat TV I have is a 23" Sony LCD. I don't like the picture on it and really only use it for field setups, when its 2.5" depth and light weight make it a breeze to schlep in the car or truck. __________________ I ain't straight outta Compton, I'm straight out the trailer. Cuss like a sailor, drink like a Mc. My only words of wisdom are just, "Radio Edit."

March 25th, 2005, 12:39 PM	#40
Boyd Ostroff Wrangler Join Date: Dec 2002 Location: Mays Landing, NJ Posts: 11,802	Hostile takeover is off In case anybody is still following Blockbuster's exploits, today they withdrew their hostile takeover bid for Hollywood Entertainment, citing concerns that it wouldn't make it past regulatory approval. This gives a green light for Movie Gallery to acquire Hollywood Entertainment, creating a combination of the country's #2 and #3 video rental chains. http://biz.yahoo.com/rb/050325/retai...kbuster_3.html

March 25th, 2005, 12:45 PM	#41
Robert Knecht Schmidt Wrangler Join Date: Feb 2002 Location: Cleveland, Ohio Posts: 1,933	Personally, I would prefer if my local Hollywood Video merged with Caterpillar, Inc. of Peoria, Illinois. __________________ All the best, Robert K S Search DVinfo.net for quick answers \| The best in the business: DVinfo.net sponsors

March 25th, 2005, 06:15 PM	#42
Mike Butler Machinist Mate Join Date: Oct 2001 Location: Southern Connecticut Posts: 644	Yeah, I just saw that on Foxnews, Boyd! RKS, I know there is a joke in there somewhere...something about crackhoes and backhoes, maybe? __________________ I ain't straight outta Compton, I'm straight out the trailer. Cuss like a sailor, drink like a Mc. My only words of wisdom are just, "Radio Edit."

March 25th, 2005, 06:44 PM	#43
Jeff Boeckman Regular Crew Join Date: Mar 2005 Location: Anchorage Alaska Posts: 32	My local video store is Suncoast and Walmart. I just purchase them. No late fees ever. late jb __________________ total newb

March 25th, 2005, 07:57 PM	#44
Robert Knecht Schmidt Wrangler Join Date: Feb 2002 Location: Cleveland, Ohio Posts: 1,933	"RKS, I know there is a joke in there somewhere...something about crackhoes and backhoes, maybe?" I just think we'd be better off with it torn down. It's a pesthole of petty theft, child abuse ("You ain't gettin' that! Put it back!" smack!), and corruption of impressionable minds with Scooby Doo 2. I go in there, but I never like it. __________________ All the best, Robert K S Search DVinfo.net for quick answers \| The best in the business: DVinfo.net sponsors

March 26th, 2005, 10:27 AM	#45
Mike Butler Machinist Mate Join Date: Oct 2001 Location: Southern Connecticut Posts: 644	WHOOF! Sounds pretty nasty! I go no further than my mailbox, using Netflix. __________________ I ain't straight outta Compton, I'm straight out the trailer. Cuss like a sailor, drink like a Mc. My only words of wisdom are just, "Radio Edit."